After the RBI’s announcement for banks to provide 6-months moratorium to the customers during lockdown due to coronavirus pandemic, the Central Bank of India is allowing moratorium of 6 months on payment of instalments of Term Loans, including:
Principal and/or interest components
Bullet repayments
EMI
Credit card dues
The relief is provided for payments falling due between 01.03.2020 and 31.08.2020. The repayment schedule of such loans and the remaining tenure will be shifted across the board by three months post the moratorium period. However, the interest will continue to accrue on the outstanding amount of the term loans during the said moratorium period.
FAQs
✅ Why has RBI announced this relief package?
RBI has announced these regulatory measures to lessen the burden of debt servicing brought by disruptions caused due to COVID-19 pandemic and to ensure there is continuity of viable businesses. The regulatory body felt that there can be a temporary disruption in the cash flows and even a loss of income for the businesses/ individuals in some cases. The present measures can bring a temporary relief to those businesses/ individuals.
✅ Which facilities eligible to avail the benefits under the RBI COVID19 regulatory package?
All Term Loans, including Retail Loans, Agricultural Term Loans, Crop Loans, & loans under Pool Purchases as well as Cash Credit/Overdraft are eligible for availing the benefits under the package.
✅ Will the rescheduling of payments happen for all kinds of Terms Loans?
Yes, it will be applicable for all Term Loans in all the segments.
✅ What will be the effect of this relief on borrowers in case of default?
The overdue payments post 01.03.2020 will not be reported to Credit Bureaus for 6 months and penal charges will be levied by the bank. However, any delay in payment will lead to default and will get reported to Credit Bureaus.
✅ What about my Credit Card dues?
This relief is available for Credit Card payments as well.
✅ What about instalments or EMIs being recovered through ECS/SI/NACH and what will be the process for refund of the instalment/EMI, if demanded by the borrower?
Please get in touch with the bank for the revised mandate.
Updated On Jun 28, 2026
Written By
Written By Reshma RawatAssistant Content ManagerCredit Cards, Credit Score, Personal Loan, Home Loan, etc.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
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